World's first wholesale kilobar gold contract to be offered in Singapore

Speaking at the annual London Bullion Market Association (LBMA) Bullion Market Forum in Singapore, Lim said the contract "will introduce centralized trading and clearing of a physically- delivered gold contract in Singapore." Comprising a series of six daily contracts, the contract will give physical users access to competitively-priced kilobars. Asia's strong demand for physical gold is the key driver for the implementation of the contract. According to reports from the World Gold Council, while global consumer demand for gold has increased nearly 50 percent over the last decade or so, demand for gold in South East Asia has increased by over 250 percent during the same period, Xinhua reports. Commenting on the significance of the announcement, Lim said, "with our close proximity to both demand and supply in Asia, I believe that Singapore is well-placed to support the bullion industry, with substantive mutual benefits." Ng Cheng Thye, president of Singapore Bullion Market Association (SBMA) said, "this contract will help to develop the gold market in South East Asia by creating greater liquidity and opportunities for growth." The World Gold Council, Singapore Bullion Market Association, SGX and four banks -- JP Morgan, Scotia Bank, Standard Bank and Standard Chartered -- are supporting the launch, Lim said. This is another step forward after the Singapore government announced its ambition to become a precious metals trading hub in the region in 2012. The government then in October removed Goods and Services Tax from investment precious metals. Since then, trade in gold has risen by 94 percent year-on-year between 2012 and 2013 from 18 billion Singapore dollars (14.4 U.S. dollars to 35 billion Singapore dollars.